West Bengal govt allows Infosys freehold possession of 50 acres of land in New Town

The sop — giving the software giant complete ownership of land instead of providing it on a 99-year-old lease — is the biggest till date given to an IT-sector investor in BengalAjanta Chakraborty&Sovon Manna | TNN | September 09, 2017, 07:48 IST

KOLKATA: The Mamata Banerjee government on Friday allowed Infosys freehold possession of the 50 acres of land allotted to it in New Town; the cabinet nod lets the IT giant use 49% of the plot for whatever purpose it deems fit after it uses the remaining 51% for its core IT operations.

The sop — giving the software giant complete ownership of land instead of providing it on a 99-year-old lease — is the biggest till date given to an IT-sector investor in Bengal. “It does not mean that every investor will get something like this but, yes, this can act as a precedent,” a senior Bengal government official said. “Decisions will be taken on a case-by-case basis,” he added. Chief minister Mamata Banerjee announced the company’s renewed interest in the state on August 29.

“We have decided to give freehold land to Infosys. The company was given 50 acres in New Town on November 18, 2011, for IT-related work on 75% of the land at 99 years’ renewable lease. Now, Infosys can use a minimum 51% of the land for IT purposes and a maximum 49% for non-IT activity,” state higher education minister Partha Chatterjee said. Infosys can even lease out the 49% land earmarked for non-IT purpose.

Neither the government nor Infosys cleared the air on how the firm would use the land but a senior IT department official told TOI that the 49% non-IT portion might be used for green or solar energy production and housing other infrastructure requirements. Asked specifically whether Infosys could make “commercial use” of 49% of the land, the official added: “Infosys is not expected to do any real estate activity on the land allotted for non-IT purpose. But they may have housing for their employees.”

All these things will become clearer over time, say officials, but they are confident that this government act will pave the way for other companies, including Wipro, to set up bigger operations here.

Infosys executive vice-president and head of infrastructure U Ramadas Kamath told TOI: “We are looking at the development. We can comment on the details once the project work begins.” Kamath reportedly led the Infosys team during the final negotiations with Bengal additional principal secretary Debasish Sen on August 28 at breakfast meet in Bengaluru, which broke the impasse after a nine-year delay in getting Bengal’s maiden Infosys investment.

Infosys will now submit the proposed plan to the government and must start construction 15 months after the land is registered and it acquires relevant permission from New Town Kolkata Development Authority (NKDA).

The Bengal CM had categorically told IT bigwigs at a July 6 meet here that her government would offer “everything else but an SEZ status” to any industrial unit interested in Bengal. “Post-GST, SEZ would be a sunset policy,” she had reasoned.

On Friday, when reporters asked Chatterjee whether the entire land was indeed at Infosys’ disposal, the minister shot back: “If we don’t give sops, you say the state is not making offers. When we have given, you ask questions… let them start their project, it will be good for Bengal.”